The Legacy Wealth Yardstick
Over the past few months I have had the pleasure of speaking to dozens of teens about money. How they make it, save it, use it and their outlook as they look to their financial futures. To those that call this generation naive, I assure you they are well aware of their financial surroundings and the missteps of those that came before them. One of the more recurring themes amongst a lot of these kids was the daunting financial journey they had to embark on and the disadvantage they felt when comparing their projected roadmap to the smaller percentage of friends who seemingly had their life scripted or what I have aptly titled as the "legacy path". It’s the way of the world and ultimately, these individuals indirectly embody the end goal that a lot of us strive for: upward socioeconomic movement. But the journeys are not the same, so stop comparing yourself to it.
Throughout my scholastic career I’ve had classmates that were gifted brand new cars, received houses for wedding presents, college was fully paid for and they took over the family business the second they graduated. Even if they fail at life, the bank of Mom & Dad bailed them out and they stand to inherit millions of dollars that they will, in turn, impart to their children. I don't think I stand alone with this narrative as most people have individuals like this in their lives. It's not good or bad, it's reality.
In my experience, the primary motivator in life for many of them is simply to meet their parents expectations. Of course there are some notable exceptions that come from families that have instilled a competitive spirit and encourage/embrace their kids going into amazing things that they are truly passionate about (I like to think that I am in this bucket but that is for others to decide). But, conversely, there are very many more that were destined for the career that they have in front of them from the moment that they were born. To put this into a more relevant sports metaphor, I grew up with individuals born on the 3 yard line. They have had four downs to get 3 yards. Where’s the fun in that?
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If you look at the top self-made (vs inherited) wealthy people: Warren Buffett, Bill Gates, Jeff Bezos, Steve Jobs, Elon Musk, Sergey Brin, Larry Page, Mark Zuckerberg, etc., they may not have been from poor families but they weren’t the richest kids in high school or college either. If you look at the data, the large majority of new millionaires in the United States are first generation immigrants. The same is true of Canada, where nearly half of the millionaires are immigrants or first generation Canadians who made their wealth after coming to Canada. These feats are impressive and why we, rightfully, place these new entrepreneurs on an idyllic pedestal. I have to think this is largely due to the grinding journey, the relative risk they took on and, as mentioned earlier, the promise of socioeconomic mobility. These are the people changing the world.
When I was young, I grew up with a young man that exemplifies the cyclical nature of legacy wealth. His dad had generational money that was imparted on to him through his father and, naturally, this pattern continued. He gave his son everything you could want: a nice truck, paid for college, a house and access to millions of dollars in capital. It isn’t any secret that his life had been mapped. As we grew, it became more and more difficult to relate my work life to his experience. It wasn't his fault but he started at the top. Stress, having a boss, meeting deadlines, this just didn't compute with him because, well, we just didn't have the same path. This all being said, I won’t lie, I began to wish I had the head start he did and that I could have had, should I had chosen a path similar to that of my father.
As I grew professionally and began to reflect on my own journey, I began to realize the huge advantages that I gained by forging my own path. I look back at what would have seemingly been an insurmountable task and reflect on the success (and sometimes failure) that my professional endeavors have had. It’s made me cherish the road I’ve meandered on because that journey molded the bricks that are the foundation of a pretty great life. I had (and have) a deep sense of satisfaction and accomplishment for crushing the obstacles in my way because, although it could have been, it wasn’t handed to me.
Why do I say all this? As a reminder that if you’re looking to compare yourself to the guy in the other lane that didn't have the same journey, you’ll lose. The world isn’t fair. People have head starts. Just run your own race, focus on your win and getting better than you were the day before. My advice is to stop worrying about what advantages other people may have (or that you perceive them to have)and focus on leveraging your gifts and what you can do with it.
Your opportunities are only limited by your mindset.
